1. operating mechanism: online loans provide loan services through the internet platform, and bank loans are provided by traditional banking institutions. Online loans are usually approved faster and the application process is convenient, while bank loans need to be handled face to face.
2. Interest rate level: The interest rate of online lending is usually relatively high, because the online lending platform is not under the traditional financial supervision system and is risky. The interest rate of bank loans is relatively low, which is influenced by regulatory policies and market competition.
3. Risk control: the risk of online lending is high, and there are risks of overdue and bad debts. After strict risk assessment and credit review, bank loans have lower risks, and banks have a more perfect repayment recovery mechanism.
4. Scope of service: Online lending platforms usually provide small loans and personal lending services to meet short-term capital needs. Bank loans provide a wider range of loan products, including personal consumption loans and housing loans.
5. Regulatory mechanism: Bank loans are strictly regulated and follow relevant laws, regulations and regulatory requirements. The supervision of online lending platform is relatively weak, but in recent years, our government has strengthened the supervision of online lending industry.
To sum up, there are obvious differences between online loans and bank loans in operating mechanism, interest rate level, risk control, service scope and supervision mechanism. The choice of loan method needs to be decided according to personal needs, risk tolerance and the use of funds.
Extended data:
Since 2007, China's online lending industry has experienced rapid development and regulatory rectification. With the continuous improvement of government regulatory policies, the online lending industry is developing in a compliant and standardized direction. At the same time, the development of Internet technology also provides more possibilities for innovative financial services.